How Do I Get a Title Loan After Bankruptcy?

Can I Get a Title Loan After Bankruptcy?

Many Americans are tightening their wallets as the cost of living rises across the country. The average individual may have difficulty covering the minimum payments for credit cards or other bills since housing and food expenses have increased over the last few years. If you had issues paying for a car loan or another form of debt, you may have filed for bankruptcy to help with your overwhelming debt obligations. But if you’re struggling with an unexpected expense now, you may wonder if you can apply for a title loan after bankruptcy.

Applicants can get approved for an auto title loan after they’re out of active bankruptcy. Lenders often reject applicants who are in active bankruptcy because of their high borrowing risk and the restrictions placed by bankruptcy trustees. While getting a loan after bankruptcy is still challenging due to your credit history, you may be able to find a lender willing to work with you since you’re not currently in a bankruptcy payment plan. If you are out of the court-ordered debt repayment process and have the income to support a title loan, you may have the opportunity to get emergency cash through this vehicle-secured loan option.¹

It’s important to mention that some title lenders prefer that you wait six months after your bankruptcy has been dismissed or discharged before you submit an application. In some cases, there is no time window after your bankruptcy proceedings are completed that determines when you can apply for funding through a title loan. If you have a vehicle with sufficient positive equity and proof of income, you can apply for an auto title loan serviced by LoanMart once you’re out of active bankruptcy. There’s no need for your past to affect your eligibility when you need fast cash to handle unexpected expenses!¹

Continue reading for more information about auto title loans and how they work with people who have declared bankruptcy. If you have specific questions about applying for a vehicle title loan, don’t hesitate to call a LoanMart title loan officer by dialing 855-422-7412 today.

How Does Declaring Chapter 7 or 13 Bankruptcy Affect My Ability to Get an Auto Title Loan? 

Chapters 7 and 13 are two of the most common forms of bankruptcy that individuals use for debt relief. While declaring either form of bankruptcy can lead to a fresh financial start, it will impact your ability to qualify for many types of credit in the future. There are several reasons why lenders will deny loan applications for applicants currently in active bankruptcies, with one of the most prevalent ones being the high risk you pose as a borrower. However, it’s important to learn how these two types of bankruptcies work to understand why lenders view you as a greater lending risk.

When a debtor declares Chapter 7 bankruptcy, or a “liquidation” bankruptcy, they are required to sell their non-exempt assets to a bankruptcy trustee to repay their debts. Once the trustee receives the funds from the sale, they will use that money to pay off the individual’s creditors and discharge them from most of their debt obligations. Some debts are difficult to erase by declaring bankruptcy, such as federal student loans. Secured debts cannot be discharged during a liquidation bankruptcy because the assets are surrendered to the creditors, or other arrangements are made. A Chapter 7 bankruptcy is a type of bankruptcy for people who don’t have sufficient income to cover their debt payments.

In the case of a Chapter 13 bankruptcy, a person with steady income will be approved by the court to develop a repayment plan to pay off their debts over a period of time. Unlike Chapter 7 bankruptcy, the individual doesn’t have to sell any assets to repay their debts and will focus on a structured payment schedule to pay off their creditors. Typically, after an individual files for Chapter 13 bankruptcy, they are required to make monthly installments to their creditors for about three to five years. Once the individual finishes the necessary payments in their repayment plan, the bankruptcy court will discharge the person’s non-priority debts, which marks the end of their bankruptcy case. 

Although you may assume that making monthly payments to creditors indicates that you are more financially stable and you are able to get approved for a title loan, that is typically not the case. Additionally, you will not be able to get a loan without approval from a bankruptcy trustee or permission from the presiding judge. Typically, you will only get approval to apply for a loan while in active bankruptcy during very specific circumstances involving medical issues or other life-threatening situations. While qualifying for a title loan can be difficult while in active Chapter 7 or 13 bankruptcy, applying for a car title loan after the bankruptcy process is completed can be a much simpler option. 

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How Filing for Bankruptcy Can Impact an Existing Title Loan

If you’re considering filing for bankruptcy to avoid paying your existing title loan, it’s essential that you understand more about this approach before you make a significant financial decision.

As mentioned above, a Chapter 7 bankruptcy involves liquidating non-exempt assets to pay off creditors. You will not be able to discharge a secured loan, like a car title loan, under Chapter 7 bankruptcy. If you file for Chapter 7 and have an existing title loan, you can pay off the loan in full or discuss other options with your title lender. Although you typically cannot wipe out your student loans or secured debt through this type of bankruptcy, you can maintain access to your vehicle by paying off the entirety of the existing title loan. If you are unable to pay off the remaining balance of your loan when filing for Chapter 7 bankruptcy, the vehicle can be surrendered to the title lender. 

When filing for Chapter 13 bankruptcy, you will still need to make payments on your loan. However, you can potentially reduce your monthly payments to make them more manageable during the repayment period. While a Chapter 13 bankruptcy sounds like an optimal solution for debt relief, if your financial situation changes during the repayment process, you may find other available options, which can include to refinance your title loan to hopefully get more favorable loan terms! Call 855-422-7412 if you have questions about refinancing an existing title loan. If you refinance your loan with a car title loan serviced by LoanMart, you can expect excellent customer service and competitive interest rates!¹

How Can I Apply for Online Title Loans After Bankruptcy?

Are you interested in getting a title loan after bankruptcy? If you need emergency cash and have completed your bankruptcy proceedings, you can apply for fast funding through a car title loan serviced by LoanMart! With this secured loan option, you can begin the application process from the comfort of your home. Simply complete the following three-step application process to get your loan proceeds:¹

1. Fill Out a Fast Pre-approval Form Online or Call a Loan Officer at 855-422-7412
2. Provide Some Necessary Documents to Verify Your Information:
   • A Car or Truck Title in Your Name
   • Valid, Government-Issued Photo Identification Card
   • Proof of Income & Residence
   • Some Recent Photos of Your Vehicle
3. Discover if You’re Fully Eligible for a Title Loan and Get Your Cash!¹

Applying for a title loan after bankruptcy can be simple through an auto title loan serviced by LoanMart. You can start your application online and instantly discover if you’re pre-approved for title loan funding! If you receive full approval for an online title loan, you can access flexible loan terms and receive quick money the same day you are approved, in some cases.³

Benefits of Choosing Title Loans After Bankruptcy

Once you’ve completed the entirety of your bankruptcy payment plan, you could be free to apply for a title loan. While title loans are primarily known for fast funding and flexible application processes, you can expect many other perks when qualifying for an auto title loan serviced by LoanMart! Here’s a quick list of some of the benefits of getting an auto title loan after bankruptcy:¹

• Flexible Repayment Options: Through an online title loan serviced by LoanMart, you’ll be able to take advantage of various payment methods during the repayment process. You can choose to set up automatic payments from your bank account, pay online through the customer web portal, or make a payment in person by visiting a participating money transfer location nearby.
• No Prepayment Penalties: If you qualify for an auto title loan serviced by LoanMart, you will not encounter prepayment penalties, hidden fees, or balloon payments!⁵
• Chance to Rebuild Credit History: Filing for bankruptcy may have significantly lowered your credit score, potentially dropping it by hundreds of points. If you want to build your credit history, it starts by creating a history of positive payment behavior. Since LoanMart will report your payment behavior to one of the major credit bureaus, paying your loan on time can help boost your credit score! However, it’s worth mentioning that you don’t need a good credit score to qualify for an online title loan serviced by LoanMart.¹

Where Can I Get Title Loans After Filing for Bankruptcy?

If you’re facing unexpected expenses after completing your bankruptcy case, consider applying for an online title loan serviced by LoanMart for fast financial relief. As mentioned previously, you can start your application online and receive quick cash after finishing three basic steps and meeting the loan criteria. All you will need to do is fill out an application form, submit the requested documents, and find out if you’re eligible for an auto title loan serviced by LoanMart!¹

Contact a title loan representative from LoanMart at 855-422-7412 if you have any questions about getting a car title loan after bankruptcy. Our title loan agents are available six days a week for extended hours to help you with anything you need. If you’re approved for a title loan serviced by LoanMart, you can sign your loan contract and choose direct deposit to get your money in as little as 24 hours!³